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Playing the trust game with other people’s money

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  • Ola Kvaløy

    ()

  • Miguel Luzuriaga

    ()

Abstract

We experimentally investigate to what extent people trust and honor trust when they are playing with other people’s money (OPM). We adopt the well-known trust game by Berg et al. (in Games Econ. Behav. 10:122–142, 1995 ), with the difference that the trustor (sender) who sends money to the trustee (receiver) does this on behalf of a third party. We find that senders who make decisions on behalf of others do not behave significantly different from senders in our baseline trust game who manage their own money. But receivers return significantly less money when senders send a third party’s money. As a result, trust is only profitable in the baseline trust game, but not in the OPM treatment. The treatment effect among the receivers is gender specific. Women return significantly less money in OPM than in baseline, while there is no such treatment effect among men. Moreover, women return significantly less than men in the OPM treatment. Copyright Economic Science Association 2014

Suggested Citation

  • Ola Kvaløy & Miguel Luzuriaga, 2014. "Playing the trust game with other people’s money," Experimental Economics, Springer;Economic Science Association, vol. 17(4), pages 615-630, December.
  • Handle: RePEc:kap:expeco:v:17:y:2014:i:4:p:615-630
    DOI: 10.1007/s10683-013-9386-4
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    Cited by:

    1. Kristoffer W. Eriksen & Ola Kvaløy & Miguel Luzuriaga, 2017. "Risk-taking on Behalf of Others," CESifo Working Paper Series 6378, CESifo Group Munich.
    2. Gylfason, Haukur Freyr & Olafsdottir, Katrin, 2017. "Does Gneezy's cheap talk game measure trust?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 143-148.
    3. repec:kap:expeco:v:20:y:2017:i:4:d:10.1007_s10683-017-9514-7 is not listed on IDEAS
    4. Tripathi, Sanjeev, 2016. "Why should I care - its Others Money," IIMA Working Papers WP2016-03-16, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Ola Kvaløy & Miguel Luzuriaga & Trond E. Olsen, 2017. "A trust game in loss domain," Experimental Economics, Springer;Economic Science Association, vol. 20(4), pages 860-877, December.

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    • A10 - General Economics and Teaching - - General Economics - - - General

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